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Breaking down IMF aid country by country

December 15, 2010

To say the International Monetary Fund has helped save the hide of a country or two would be an understatement. The organization, which provides loans to countries in exchange for their commitment to meeting strict economic targets, now provides a third of the total amount of euro-zone bailouts, and news headlines on an almost-daily basis alert us to what country is getting how much and for what reason. Here’s a snapshot of notable countries that have recently sought or received IMF aid or credit lines, along with financial amounts and other relevant information.

  • Ireland
    What and how much:
    22.5 billion euro ($30 billion) loan, part of a joint EU-IMF rescue package totaling 85 billion euros
    Why:
    To recapitalize banks and cover Ireland’s borrowing costs over the next three years
    Status:
    Approved (Updated on November 17, 2010)

  • Greece
    What and how much:
    30 billion euro ($40 billion) loan, part of a joint EU-IMF rescue package totaling 110 billion euros
    Why:
    A crippling national deficit that threatened to send the country into default
    Status:
    Approved
  • Mexico
    What and how much:
    Boost to credit line to $72 billion from $48 billion over two years
    Why:
    Safety net in case of more global financial market turmoil
    Status:
    Nearing approval
  • Colombia
    What and how much:
    A $3.46-billion flexible credit line
    Why:
    As a precautionary measure to be available if needed for crisis prevention
    Status:
    Approved
  • Ukraine
    What and how much:
    The next $1.6 billion loan tranche as part of its $15 billion credit line
    Why:
    Ukraine’s economy was hit hard by the global financial crisis and shrank 15 percent in 2009
    Status:
    2011 national budget passed first reading, awaiting second and subsequent IMF approval
  • Serbia
    What and how much: Loan to replace its existing 3-billion-euro ($4 billion) standby loan, which expires in February 2010
    Why: Precautionary loan to help the country meet budget deficit goals
    Status: Not yet sought IMF approval
  • Pakistan
    What and how much: The country is seeking an extension of an $11 billion IMF loan program due to delays in implementing reforms needed to secure the next tranche
    Why: To keep Pakistan’s fragile economy afloat as it grapples with a widening deficit and flood devastation
    Status: Unknown
  • Poland
    What and how much: A flexible credit line worth $20.4 billion
    Why: Risks from the fragile euro-zone economic outlook and the possibility of a spillover from countries in region
    Status: Approved
  • Romania
    What and how much: A $1.12 billion disbursement under a 20-billion-euro aid package signed in 2009
    Why: To restore macroeconomic stability and achieve an orderly adjustment of pre-crisis imbalances
    Status: Approved
  • Belarus
    What and how much: A $700 million tranche that brings total IMF aid to the country to roughly $4 billion
    Why: Continued precautionary measures to help address macroeconomic problems and mitigate vulnerability to external factors such as high Russian fuel prices
    Status: Approved

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